We estimate intergenerational earnings persistence for 6 ethnic groups using linked administrative data for approximately 288,000 individuals in New Zealand born between 1986 and 1992. Linking data from administrative datasets, censuses, and surveys, we focus on 198,000 parent-child pairs actively participating in the labour market. Our preferred IV rankrank slope which adjusts for earnings measurement error is 0.27, suggesting that children inherit roughly one-quarter of parental earnings advantage or disadvantage. We analyse relative and absolute persistence, variations by ethnicity and gender, and explore the role of observable characteristics. Finally, we discuss underlying factors influencing persistence, including the potential role of discrimination and racism in labour markets and broader society.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.